§ Lord Tebbitasked Her Majesty's Government:
Whether they agree with the Presidency Conclusion of the European Council at Cannes that the "introduction of the single currency will be the lasting solution to these ['currency turmoil' ] problems."
§ The Minister of State, Department of Social Security (Lord Mackay of Ardbrecknish)The European Council at Cannes concluded that "… it is important for all Member States to make the necessary efforts with regard to convergence, this being a precondition for introduction of the single currency, which will be a lasting solution to these [currency turmoil] difficulties."
This Government believe that proper economic convergence is necessary for sustained exchange rate stability. All governments need to concentrate on getting deficits under control and bearing down on inflation.
The UK's protocol, annexed to the EC Treaty, means that the UK cannot be forced to move to the third stage of Economic and Monetary Union. We will only agree to take part in a single currency if it is in our national interest to do so, given the circumstances at the time.